Is Inflation Here to Stay?

Q: It seems like I have to take out a second mortgage just to fill up the gas tank and restock the pantry. Are these inflated prices a forever thing?

A: According to the most recent report by the Bureau of Labor Statistics, U.S. inflation is currently running at a 30-year high of 6.2%, and it’s showing no signs of slowing.

Inflation is not going anywhere soon

Rising prices in just about every sector is the new norm. The inflation rate fell at the start of the coronavirus pandemic, and during the nationwide lockdown. In March 2021, though, when the impact of halted manufacturing began hitting the market and crude oil prices started climbing, the inflation rate increased to 2.6% before hitting its current high of 6.2% in October. Experts, like the Trading Economics information technology company, had predicted that number would be around 5.5%, but even that prediction fell short.

Unfortunately for the average consumer who’s struggling to cover expenses amid rising costs, this means inflation isn’t going anywhere soon.

Why are prices so high?

There are several factors for the inflation bubble. First, suppliers are still catching up on production shortages that were caused by factory shutdowns during the pandemic. Second, climate disasters, like California wildfires and a drought in Brazil, are responsible for driving up prices in the food industry. The demand for higher wages, partially caused by the 11 million job openings in the U.S., and the rising cost of gas, are contributing to inflation as well.

What can consumers expect in 2022?

While no one can accurately predict the future, economists are expecting inflation levels to taper off by the middle of 2022. According to a survey conducted by the Wall Street Journal, many are expecting inflation to drop to 3.4% by June 2022 and to continue falling until it hits 1.8% by the end of the year.

Your Turn: When do you think the inflation rate will fall? Tell us about it on Facebook, LinkedIn,Twitter, or Instagram @FreedomFedCU.

About Freedom Federal Credit Union

Freedom Federal Credit Union is a community-chartered federal credit union offering consumer financial services to those who live, work, volunteer, worship, attend school, or have family in Harford and Baltimore Counties. Additionally, Freedom offers a full-line of banking services for all businesses, associations, and other organizations that are based in Harford or Baltimore County. Freedom has been in business since 1953 and has six locations throughout Harford and Baltimore County. To learn more, visit freedomfcu.org.

4 Scams to Watch Out for this Black Friday

Black Friday has traditionally been the day that ignites the holiday shopping season, sending masses of crowds through retailers across the nation. Unfortunately, it’s also a day that spawns a season of shopping scams.

Here are four scams to watch out for on Black Friday and throughout the holiday shopping season:

The Amazon Prime service fraud scam

In this ruse, a scammer posing as an Amazon representative, will call to notify a target about an alleged problem with their Prime account. The victim is prompted to download a tool onto their computer or mobile device so the caller can gain remote access for “helping them resolve the problem” at hand. They’ll then be instructed to log onto their banking account so the caller can be compensated for their time. Unfortunately, this will give the scammer free reign over the victim’s accounts.

Phishing emails

In these scams, the victim receives an email allegedly sent by Amazon or another large retailer, asking them to verify or update their account. Or, it might be to supposedly confirm an order. By using the link dropped into the email, the user will give their personal information directly to the scammer.

Delivery issues

Delivery scams generally take the form of a message appearing to be from UPS or another delivery service, informing the victim of a “delivery issue” with an order. They’ll be asked to confirm or update their info using a provided link. Doing so gives the scammer access to their financial information and opens the door to identity theft and more.

Non-delivery scam

This scam involves a purchased gift that never arrives. Unfortunately, the seller disappears after payment, leaving the victim with no way of notifying them about the no-show or for requesting a refund.

Avoid Black Friday scams

Never grant a stranger access to your device and/or accounts.
Don’t open links sent in emails from unverified contacts.
Never share sensitive information with an unknown contact.
Keep the privacy and spam settings on your devices at their strongest settings.
If you have an issue with an ordered item, contact the retailer directly through their site.
When shopping on a new site, look for a physical address, a customer service number and copy that’s free of spelling errors.

Stay safe!

If you receive something suspicious via text, email, or mail, related to your financial accounts please don’t hesitate to reach out if you are unsure.

Your Turn: Have you encountered a scam like this before? Tell us about it on Facebook, LinkedIn,Twitter, or Instagram @FreedomFedCU.

Mortgage Payment Scams

The Mortgage Payment Scam has been around a long time. Mortgages are recorded in the local county courthouse and are therefore public information. It is just as easy for a criminal to get a hold of this information as anyone else, so be mindful of any solicitations you get in the mail regarding your property.

How does it work?

A member may receive a letter from a company other than their known mortgage company indicating that they purchased their Freedom mortgage and future payments are to be make to them, not us. This is the entire SCAM. Freedom does not sell the servicing of our mortgages to anyone. If you receive such a letter, please disregard and report it back to us.

How can I protect myself from this type of scam?

Do:

Be wary of any solicitations demanding immediate payment or warning that you are late on a payment that is not from your known mortgage provider.
Call your mortgage provider to confirm that there have been no changes to your loan servicing agreement.
Report the letter to your credit union.
Use the Consumer Finance Protection Bureau’s online portal to file a mortgage-related complaint
Report any suspected scams to the Better Business Bureau (BBB). Don’t let those crooks walk free!

Don’t:

Make a payment to anyone who is not your known mortgage lender without verified proof from your original lender.
Share any personal information with an unverified contact. If it’s personal info, make sure to keep it that way!
Click on links or download files from an unfamiliar email address.

Stay safe!

Freedom keeps all loans, including mortgages, in house for the duration of the loan term. Your loans will not be sold to any other management company. If you receive something suspicious via text, email, or mail, please don’t hesitate to reach out if you are unsure.

Your Turn: Have you encountered a scam like this before? Tell us about it on Facebook, LinkedIn,Twitter, or Instagram @FreedomFedCU.